Murrieta Real Estate Making an offer a Murrieta Home Back to Communities - Murrieta Homes

Making an Offer

You have been looking at Murrieta homes for weeks, and you have visited neighborhoods at all times of the day and night. You have investigated schools and timed your work commute. Finally, you have selected a Murrieta home that fits your needs. It is now time to make an offer.

Where do you start? What exactly do you have to do? What kind of legal commitment are you making? Can you negotiate price and terms?

If you have done your homework up to this point, making an offer is the culmination of all your background research. Yet there are steps you can take to ensure that this part of the process moves along smoothly and protects your interests.

The First Steps

You probably already have taken the very first steps toward making an offer on Murrieta real estate. You already should have done some preliminary shopping for a mortgage and become preapproved. The preapproval letter has given you the price range within which you have looked for a home and financial options for buying one. Also, you have obtained your credit report and determined if it is accurate and up-to-date.

If you have not already done so, find a real estate agent. You want to select a buyer's agent who will work exclusively for your interests as opposed to a seller's agent whose job is to get the best deal for the seller. As you prepare to make an offer on a Murrieta home, your agent can be extremely helpful, so it is important to select one with whom you can work and who has access to all the information you need to make the offer.

Learning the Market

When you are ready to make an offer, you should do some advance preparation. Gathering as much information as you can about the Murrieta real estate in question, the neighborhood, and the seller will help you later in your negotiating. It is especially helpful to find out why the seller is selling. Does the seller have to sell–he or she is moving out of town or has suffered financial setbacks–or does the seller want to sell for other reasons—a new baby requires a larger home, or the seller is downsizing because the kids have left home. If your agent is a buyer's agent, he or she may be able to get this information for you, depending on what the seller and the seller's agent want you to know. If you are working with an agent who represents the seller or who is a dual agent, he or she cannot reveal this type of information without the permission of the seller.

Comparative Market Analysis (CMA)

Before you make a purchase offer on your Murrieta real estate, you have to know how much to offer. This is where an agent is critically important: real estate agents have access to the information on a comparative market analysis. Ask your agent for a written CMA to help you determine the fair value of the home. The CMA will list the prices for which Murrieta homes in the neighborhood have sold recently as well as the asking prices of comparable listings in the area.

The CMA also should provide information about the homes that are being compared: the square footage, the number of bedrooms and baths, the listing price and the selling price. Be certain that your agent investigates homes that are similar to the one you want to buy. Comparing a three-bedroom, two-bath house to your four-bedroom, three-bath selection is of little value, as is a CMA that includes properties from a neighborhood three miles away. The CMA must list the sales of Murrieta real estate in the immediate neighborhood within the last year. Naturally, the more current the information the more helpful the CMA will be in determining the offer you should make. Ideally, you should look at Murrieta homes that have sold in the neighborhood over the last few months.

Other Market Information

Gather information about factors other than the selling price of comparable homes. Look at the Murrieta homes that have sold in the neighborhood. What kind of condition are they in? Compare their condition to the house you are considering. Does your home appear to be in better shape than the others? Look beyond the size and number of rooms. This kind of information can make a difference in how much you are willing to offer for your Murrieta real estate.

Also, does your Murrieta home have some extras? For example, does your home have an addition that includes another bathroom or an expanded kitchen? Is there a swimming pool or an extra-large garage? Is the landscaping part of its charm? Expanded living space can influence the final price, but be careful not to overestimate cosmetic additions, such as a pool or a beautiful yard. The swimming pool may be a deciding factor for you, but it actually may be a disadvantage if you try to sell the house later. A pool that cost $30,000 does not add $30,000 to the value of the Murrieta real estate.

Determining What to Offer

Your offer is an important step in the home buying process, and you should give a great deal of thought to determining what is a fair price for your Murrieta real estate. If your agent is a buyer's agent, discuss the offer price with him or her; the agent can point out features that make the sale more or less attractive to you and help you adjust your price. If your agent is a seller's agent, request that any discussions you have about the offer remain confidential.

To determine a fair offer, consider the following:

• the prices of the Murrieta homes that have recently sold in the neighborhood—refer to the CMA;
• the highlights and problems with the Murrieta home, such as major items that need replacing within the next year or so;
• the time the Murrieta real estate has been on the market—a home that has been on the market for a while places the buyer in a stronger position;
• the market—whether it is a sellers' or a buyers' market and whether or not Murrieta real estate is selling quickly or slowly;
• the ?nancing of the purchase;
• the seller's situation, such as a job transfer that has required the seller move immediately, a divorce or ?nancial dif?culties; and
• the time of year—for example, Murrieta home sales are generally slower during the holidays or the winter months.

In addition, think about any household items you want to include in the offer. Do the furnishings in one of the rooms fit the room perfectly? Is there portable shelving in the garage or basement that you would like? Does the yard have children's play equipment you want to keep? This is the time to ask the seller about including some of these items in your purchase for an additional amount of money. The seller may not plan to move the play equipment or may have plans to buy new furniture and would welcome the extra cash. Be sure to figure these items in before making an offer on the Murrieta real estate.

If you need any information on Murrieta Real Estate or Property please check our Murrieta Homes section on this website or contact us at any time.